Thursday, Apr 08, 2010

Hidden precipice

Telegraph: Sovereign debt crisis at 'boiling point', warns Bank for International Settlements

The risk is an "abrupt rise in government bond yields" as investors choke on a surfeit of public debt. "Bond traders are notoriously short-sighted, assuming they can get out before the storm hits: their time horizons are days or weeks, not years or decade. We take a longer and less benign view of current developments," said the study, entitled "The Future of Public Debt", by the bank's chief economist Stephen Cecchetti.

Posted by quiet guy @ 08:11 AM (572 views) Add Comment

5 Comments

1. devo said...

memo to UK creditors:

you won't be getting your money back

do try to come to terms with that

the uk didn't win WWII just to have austerity measures put in place, at the whim of some quango called 'The Bank for International Settlements'

Thursday, April 8, 2010 09:19AM Report Comment
 

2. tyrellcorporation said...

Expect UK IRs to sky-rocket after a Labour win or a hung parliament. I now fear a full sterling crisis as labour won't have the stomach to put the house in order. Psycho Brown won't give a monkey's though as he only dreams of getting a mandate.

Thursday, April 8, 2010 10:05AM Report Comment
 

3. tenyearstogetmymoneyback said...

devo said "the uk didn't win WWII just to have austerity measures put in place"

Actually they did. At the weekend I was reading a book about the old Hornby tinplate trains
and it pointed out (as is common knowledge) that after the war things in the UK actually got worse.
Although they restarted production of the upmarket electric trains they were for export only.
The U.K. had to make do with the downmarket clockwork versions. The chances are people in the UK were
probably more worried about bread rationing (which only started after the war) than wanting an electric train set.

Thursday, April 8, 2010 10:25AM Report Comment
 

4. devo said...

@tenyearstogetmymoneyback

a short period of rationing was a price worth paying for freedom from tyranny

Thursday, April 8, 2010 11:08AM Report Comment
 

5. mr g said...

@devo "a short period of rationing was a price worth paying for freedom from tyranny"

Which is exactly why a short period of austerity and rationing will be a price worth paying for freedom from the tyranny of Crash Gordon.

Thursday, April 8, 2010 09:44PM Report Comment
 

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